ASIC Corporations (Managed Investment Schemes: Interests Not For Money) Instrument 2016/1107

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Legislation au F2016L01855 In force Legislative Instrument

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ASIC Corporations (Managed Investment Schemes: Interests Not For Money) Instrument 2016/1107

 

About this compilation

 

Compilation No. 2

 

This is a compilation of ASIC Corporations (Managed Investment Schemes: Interests Not For Money) Instrument 2016/1107 as in force on 5 October 2021. It includes any commenced amendment affecting the legislative instrument to that date.

 

This compilation was prepared by the Australian Securities and Investments Commission.

 

The notes at the end of this compilation (the endnotes) include information

about amending instruments and the amendment history of each amended provision.

 

 

Contents

Part 1—Preliminary

1 Name of legislative instrument

3 Authority

4 Definitions

Part 2—Relief for managed investment schemes

5 Film investment scheme

6 Interests not for money scheme

7 Show scheme

Endnotes

Endnote 1—Instrument history

Endnote 2—Amendment history

 

Part 1—Preliminary

1 Name of legislative instrument

This is the ASIC Corporations (Managed Investment Schemes: Interests Not For Money) Instrument 2016/1107.

3 Authority

This instrument is made under subsections 601QA(1), 926A(2), 992B(1) and 1020F(1) of the Corporations Act 2001.

4 Definitions

In this instrument:

Act means the Corporations Act 2001.

cinematograph film has the meaning given by section 10 of the Copyright Act 1968.

film investment scheme means a managed investment scheme for the development and/or production of a cinematograph film (including a script or component of such a film), where each offer or issue of interests in the scheme is made to one or more of the following:

(a) Australian Broadcasting Corporation;

(b)  Australian Children’s Television Foundation;

(c)  Screen Australia;

(d)  Film Victoria;

(e)  Screen NSW;

(f)  Screen Queensland;

(g)  South Australian Film Corporation;

(h) Special Broadcasting Service Corporation;

(i)  ScreenWest;

(j)  a person whose ordinary business is or includes broadcasting or distributing films and who has a right to license or otherwise exploit the copyright to the cinematograph film to which the offer or issue relates; or

(k)  in circumstances, other than because of this instrument, that do not require a Product Disclosure Statement to be given.

interests not for money scheme means a managed investment scheme arising out of a contract or proposed contract under which every interest in the scheme is issued:

(a)  to a person (participant) as consideration for or as part of the consideration for any of the following:

(i) personal or professional services to be provided by the participant or, where the participant is not a natural person, by an officer or employee of the participant providing such services in the ordinary course of its business;

(ii) the sale or transfer of or grant of any right to use or exploit present or future intellectual property or know-how of the participant resulting from the labour or efforts of the participant or, where the participant is not a natural person, acquired in the ordinary course of its business;

(iii) the sale or transfer of goods imported, manufactured or produced by the participant in the ordinary course of its business;

(iv) the sale or transfer of, or the entry into or grant of any interest in land where:

(A) the participant; or

(B) a person (other than the issuer or one of its associates) that held an interest in the scheme and from whom the participant has acquired the interest in land;

has held the interest in land for at least 6 months before any offer of an interest in the scheme was made;

(v) the sale, grant or transfer of any business, or any proprietary interest with respect to a business, owned by the participant for at least 6 months before any offer of an interest in the scheme was made;

 where:

(vi) no money is to be paid and no financial products are to be transferred by the participant in consideration for the interest or in relation to the grant of the interest, either to the issuer or to any associate of the issuer, unless:

(A)  the payment is a fee for services rendered or a reimbursement of incidental expenses; and

(B)  the nature of the services or expenses and the applicable cost or means of calculating the applicable cost is separately disclosed to the participant before entering into the contract; and

(vii)  any right of the participant under the terms of the contract to terminate the contract or otherwise take action for default is not dependent upon the approval or other action of persons who have entered into similar contracts with the issuer; and

(viii)  the interest does not relate to any other managed investment scheme; or

(b)  in circumstances, other than because of this instrument, that do not require a Product Disclosure Statement to be given;

but does not include a scheme if all interests in the scheme have been issued in the circumstances referred to in paragraph (b).

offer includes an invitation to make an offer.

show scheme means a managed investment scheme for the development and/or production of a cinematograph film, sound recording, work, or live performance (including a script or component of such a film, recording, work, or performance), under which every interest in the scheme is issued:

(a)  to a person (participant) as consideration for or as part of the consideration for any of the following:

(i) personal or professional services to be provided by the participant or, where the participant is not a natural person, by an officer or employee of the participant providing such services in the ordinary course of its business; or

(ii) the sale or transfer of or grant of any right to use or exploit present or future intellectual property or know-how of the participant resulting from the labour or efforts of the participant or, where the participant is not a natural person, acquired in the ordinary course of its business;

where:

(iii) no money is to be paid and no financial products are to be transferred by the participant in consideration for the interest or in relation to the grant of the interest, either to the issuer or to any associate of the issuer, unless:

(A)  the payment is a fee for services rendered or a reimbursement of incidental expenses; and

(B)  the nature of the services or expenses and the applicable cost or means of calculating the applicable cost is separately disclosed to the participant before entering into the contract;

(iv) any right of the participant under the terms of the contract to terminate the contract or otherwise take action for default is not dependent upon the approval or other action of persons who have entered into similar contracts with the issuer;

(v) the interest does not relate to any other managed investment scheme; or

(b)  in circumstances, other than because of this instrument, that do not require a Product Disclosure Statement to be given.

work has the meaning given by section 10 of the Copyright Act 1968.

 

Part 2—Relief for managed investment schemes

5 Film investment scheme

Exemptions

(1) A person does not have to comply with subsection 601ED(5) of the Act in relation to a film investment scheme.

(2) A person providing financial services in relation to an interest in a film investment scheme does not have to comply with subsection 911A(1) of the Act.

(3) A person does not have to comply with section 992A and Part 7.9 of the Act in relation to an offer, issue or recommendation to acquire an interest in a film investment scheme.

6 Interests not for money scheme

Exemptions

(1) A person does not have to comply with subsection 601ED(5) of the Act in relation to an interests not for money scheme.

(2) A person providing financial services in relation to an interest in an interests not for money scheme does not have to comply with subsection 911A(1) of the Act.

(3)  A person does not have to comply with section 992A and Part 7.9 of the Act in relation to an offer, issue or recommendation to acquire an interest in an interests not for money scheme.

7 Show scheme

Exemptions

(1) A person does not have to comply with subsection 601ED(5) of the Act in relation to a show scheme.

(2) A person providing financial services in relation to an interest in a show scheme does not have to comply with subsection 911A(1) of the Act.

(3)  A person does not have to comply with section 992A and Part 7.9 of the Act in relation to an offer, issue or recommendation to acquire an interest in a show scheme.

Endnotes

Endnote 1—Instrument history

Instrument number

Date of FRL registration

Date of commencement

Application, saving or transitional provisions

2016/1107

2/12/2016 (see F2016L01855)

6/12/2016

 

2017/65

23/3/2017 (see F2017L00284)

24/3/2017

-

2021/799

22/9/2021 (see F2021L01310)

5/10/2021

-

Endnote 2—Amendment history

ad. = added or inserted     am. = amended     LA = Legislation Act 2003    rep. = repealed     rs. = repealed and substituted

Provision affected 

How affected

Section 2

rep. s48D LA

Section 4 (definition of interests not for money scheme, paragraph (b))

rs. 2017/65

Subsection 5(3)

am. 2021/799

Subsection 6(3)

am. 2021/799

Subsection 7(3)

am. 2021/799

 

 

Overview

The ASIC Corporations (Managed Investment Schemes: Interests Not For Money) Instrument 2016/1107 was enacted in 2016 to address specific regulatory gaps within the managed investment scheme framework, particularly concerning schemes where interests are offered not for monetary consideration but in exchange for services, intellectual property, goods, or other non-monetary contributions. This legislative instrument was created under the authority of the Australian Securities and Investments Commission (ASIC) and operates in conjunction with the Corporations Act 2001. It provides exemptions from certain requirements for managed investment schemes that offer interests in exchange for non-monetary contributions, aiming to facilitate and support the development of creative industries such as film, television, and live performances without the burden of excessive regulatory compliance. The instrument explicitly defines various types of schemes, including film investment schemes, interests not for money schemes, and show schemes, to clarify the scope of its application and to streamline the regulatory process for these innovative investment structures.

Scope and Application

The ASIC Corporations (Managed Investment Schemes: Interests Not For Money) Instrument 2016/1107 applies to managed investment schemes that fall under specific categories, namely film investment schemes, interests not for money schemes, and show schemes, as defined by the instrument. These schemes are targeted at certain entities and individuals, such as Australian public broadcasting corporations and entities involved in film production, where the issuance of interests is contingent upon the provision of services, intellectual property, goods, land, or business interests, rather than monetary payments or financial products. The exemptions provided by the instrument relieve the entities and individuals involved in these schemes from certain compliance requirements under the Corporations Act 2001, including those related to the offer, issue, and recommendation of interests in these schemes, as well as the provision of financial services in relation to such interests. The instrument operates nationally across Australia, aligning with the jurisdictional reach of the Corporations Act 2001. The application of the instrument may be further extended or restricted through subordinate instruments, which are subject to the authority granted under the specified subsections of the Corporations Act 2001.

Key Provisions

The ASIC Corporations (Managed Investment Schemes: Interests Not For Money) Instrument 2016/1107 provides exemptions from certain provisions of the Corporations Act 2001 for three types of managed investment schemes: film investment schemes, interests not for money schemes, and show schemes. Section 5 of the instrument exempts film investment schemes from the need to comply with subsection 601ED(5) of the Corporations Act, which requires the disclosure of certain information to participants in a managed investment scheme (subsection 5(1)). It also exempts financial service providers from the requirement to comply with subsection 911A(1) of the Corporations Act, which prohibits certain conduct in relation to financial products (subsection 5(2)). Additionally, it exempts from section 992A and Part 7.9 of the Corporations Act, which concern offers and recommendations to acquire interests in managed investment schemes (subsection 5(3)). The instrument similarly exempts interests not for money schemes (section 6) and show schemes (section 7) from these same provisions. The Act imposes obligations on entities offering or providing financial services in relation to these schemes. While the exemptions relieve these entities from some compliance requirements, they must still ensure that any services provided or financial products offered are not misleading or deceptive, and that they comply with other relevant laws and regulations. This includes ensuring that any fees or expenses charged to participants are reasonable and fully disclosed. Entities must also ensure that any contracts or agreements entered into with participants are fair and not unconscionable. Failure to comply with the Corporations Act, even in relation to exempted schemes, can result in civil or criminal penalties. For individuals, penalties can include fines of up to $275,000 for each offence, or imprisonment for up to five years, or both, for serious or repeated breaches. For bodies corporate, the penalties can be significantly higher, with fines of up to $1.375 million for each offence. Additionally, the Australian Securities and Investments Commission (ASIC) has the power to seek injunctions, orders for compensation, and other remedies in cases of non-compliance. The exact penalties depend on the nature and severity of the breach, as well as other relevant factors.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.